The Athabasca Oil Sands Project Joint Venture recently reached a settlement withcertain of its insurance underwriters under Section III of the policy issued in relation to the project, according to Western Oil Sands. Profit loss due to insurance claims that arose from the Jan. 6, 20003 fire at the Muskeg River Mine motivated the Joint Venture settlement.Under terms of the settlement, Western will receive $16.3 million from some of the policy’s section three insurance underwriters. Furthermore, Western will report these proceeds as a reduction in capital assets. In an attempt to finalize a contingent settlement for its remaining share of the settlement proceeds, Western is trying to garner $27.7 million from those insurance underwriters that also subscribed to section four (cost overrun and start up delay) of the Company’s insurance policy.The remaining amount will become payable to Western if it is successful in the arbitration proceedings, which persist with the section four insurance underwriters.
Captain Obvious: Premiums will rise after 2024’s loss year
If one consequence of insurers paying out $7.6 billion in claims damage for severe weather events isn’t obvious enough, P&C insurance industry professionals are spelling it out: consumers can expect to see their property premiums increase sometime in the near future. “I’m happy to be in an industry that’s trying to actually meet the consumer’s […]
By Alyssa DiSabatino | September 20, 2024
3 min read